Registration under GST
Introduction
In any tax system registration is the most fundamental requirement for identification of tax payers ensuring tax compliance in the economy. Registration of any business entity under the GST Law implies obtaining a unique number from the concerned tax authorities for the purpose of collecting tax on behalf of the government and to avail Input tax credit for the taxes on his inward supplies. Without registration, a person can neither collect tax from his customers nor claim any input tax credit of tax paid by him.
Need and Advantages of Registration
Registration will confer the following advantages to a taxpayer:
He is legally recognized as supplier of goods or services
- He is legally authorized to collect tax from his customers and pass on the credit of the taxes paid on the goods or services supplied to the purchasers/ recipients
- He can claim input tax credit of taxes paid on his purchases / procurements and can utilize the same for payment of taxes due on supply of goods or services
- Seamless flow of Input tax credit from suppliers to recipients at the national level.
Nature of Registration
- The registration in GST is PAN based and State specific.
- A person registered in one State is considered ‘unregistered person’ outside the State.
- If a person has unit in SEZ or is a SEZ developer and unit in domestic tariff Area (i.e. outside the SEZ) in the same State, then he must take separate registration for his SEZ unit / as a SEZ developer
Persons Liable for Registration
GST being a tax on the event of “supply” every supplier needs to get registered.
- Businesses with turnover above the threshold limit of Rs.40 lakh or Rs.20 lakh or Rs.10 lakh.
- Inter-state supplier of goods and services
- Casual taxable person / Input Service Distributor (ISD), Non-resident taxable person, Supplier of goods through an e-commerce portal, Any service provider.
- Online data access or retrieval service provider.
Persons not Liable for Registration
- Person engaged exclusively in supply of non-taxable or exempt Goods and or services.
- Agriculturist limited to supply of produce out of cultivation of land.
- Persons making only reverse charge supplies.
- Casual taxable person making inter-State taxable supplies of notified handicraft goods and notified hand- made goods up to ₹ 20* lakh.
- Persons making inter-State taxable supplies of notified handicraft goods and notified hand-made goods up to ₹ 20* lakh.
- Persons making intra-State supplies of goods through an ECO with aggregate turnover not exceeding threshold limit and not making supply in more than one State/UT, with one enrolment no.
* ₹10 lakh in case of Special Category States of Mizoram, Tripura, Manipur & Nagaland.
PARTICULARS |
STATES
| The threshold limit of persons engaged in supply | |
Exclusively Goods | Services and or supply of goods | ||
Normal States (other than Special Category States under constitution) | Puducherry + Telangana | Rs. 20 Lac | Rs. 20 Lac |
Others | Rs. 40 Lac | Rs. 20 Lac | |
Special Category states (for sec 22) | Manipur, Mizoram, Tripura, and Nagaland | Rs. 10 Lac | Rs. 10 Lac |
Special States as per constitution but not for section 22. | Arunachal Pradesh + Uttarakhand + Meghalaya + Sikkim | Rs. 20 Lac | Rs. 20 Lac |
Jammu and Kashmir + Assam + Himachal Pradesh | Rs. 40 Lac | Rs. 20 Lac | |
Time limit to apply for registration
Person liable to get registration
- within 30 days from the date on which he becomes liable to registration
A Casual taxable person or Non-resident taxable person
- At least 5 days prior to commencement of business.
Effective date of registration
- IF application is submitted within 30 days from becoming liable to registration
Effective date is date of becoming liable to get register.
IF application is submitted after 30 days from becoming liable to registration
Date of grant of registration.
SUO-MOTO registration by proper officer
- If pursuant to any survey, enquiry, inspection, search or any other proceedings under the Act, Proper officer finds that a person liable to registration under the Act has failed to apply for such registration, Proper officer may register said person on a temporary basis.
- Such person shall either: (a) submit application for registration within 90 days from date of grant of temporary registration, or (b) file an appeal against such temporary registration.
- However, if Appellate Authority upholds (continue) the liability to registration, application for registration shall be submitted within 30 days from date of issue of such order
Procedure for Registration
- Every person liable to get registered and person seeking voluntary registration shall, before applying for registration, declare his Permanent Account Number (PAN) and State/UT in the FORM GST REG-01 on GST Common Portal.
- PAN is validated online by Common Portal from CBDT database and is also be verified through separate OTPs sent to the PAN linked mobile number and e-mail address.
- Temporary Reference Number (TRN) is generated and communicated to the applicant on the validated mobile number and e-mail address.
- On receipt of such application, an acknowledgement in the prescribed form shall be issued to the applicant electronically.
- If application & accompanying documents are proper, Proper officer shall grant registration to applicant within 7 working days from date of submission of application.
- If application is found deficient, Proper officer may issue a notice to applicant electronically in GST REG-03 within 7 working days from date of submission of application.
- Applicant shall furnish clarification, information, or documents electronically, in Form GST REG-04, within 7 working days from date of receipt of notice.
- Where no reply is furnished by applicant (or where PO is not satisfied with clarifications), Proper officer may reject such application & inform applicant in GST REG-05.
Deemed Approval
If Proper officer fails to take any action within stipulated time, application for grant of registration shall be deemed to have been approved. | |
Where registration is to be granted after physical verification of the premises of a person –
| within 30 days from the date of submission of application |
in cases where a person successfully undergoes authentication of Aadhaar number or is exempt from Aadhaar authentication | within 7 working days from the date of submission of application. |
in cases Proper officer where issues notice seeking clarification, information or documents from the applicant | within 7 working days from the date of receipt of clarification, information, or documents. |
Amendment of GST Registration
Once a person is registered under GST, there may be a need to amend certain details provided in the registration application. The GST law categorizes these amendments broadly into:
- Core field amendments
- Non-core field amendments
Core Field Amendments
Core field amendments are changes to the fundamental information that defines the identity or legal status of the registered person, these typically include changes to critical information such as:
- Legal name of the business
- Principal place of business
- Addition or deletion of partners/directors.
- Addition place of business and change of place of business
Non-core field amendments
Non-core field amendments typically include changes to information that are not critical to the basic identity or legal status of the registered person. These may include updates to:
- Contact details
- Authorized signatory details
If change relates to non-core fields of information, registration certificate shall stand amended upon submission of the application for amendment on the Common Portal.
Cancellation of Registration
The proper officer may cancel the registration of a person under various circumstances, including:
- The business has been discontinued, fully transferred, amalgamated, demerged, or otherwise disposed of.
- There is a change in the constitution of the business.
- The taxable person is no longer liable to be registered under Section 22 or Section 24, or intends to opt out of voluntary registration.
- A registered person has contravened the provisions of the Act or the rules made thereunder.
- A person paying tax under composition scheme has not furnished the return for a financial year beyond three months from the due date.
- Any registered person, other than those under composition scheme, has not furnished returns for such continuous tax period as may be prescribed.
- A person who has taken voluntary registration under Section 25(3) has not commenced business within six months from the date of registration.
- Registration has been obtained by fraud, willful misstatement, or suppression of facts.
Payment of dues before cancellation
Every Registered person whose registration is cancelled shall pay amount equivalent to higher of:
- Reversal of ITC claimed in respect of inputs held in stock & inputs contained in semi-finished or finished goods held in stock or capital goods or plant and machinery or
- Output tax payable on such goods on immediately preceding day of cancellation.
Revocation of Cancellation of Registration
Any registered person whose registration is cancelled by Proper officer on his own motion, may apply to for revocation of cancellation of registration within 30 days from date of service of cancellation order. Note: If registration is cancelled due to non-filing of return, application for revocation can be filed only after such returns are filed & tax is deposited with interest, penalty & late fee.
Proper officer may by order, either revoke cancellation of registration or reject the application within 30 days of receipt of application & communicate the same to applicant.
Bank account details may be furnished after obtaining registration certificate.
- Bank A/c details are required while applying for registration.
- New Rule 10A → registered person is allowed to furnish bank A/c details on common portal within Earlier of (a) 45 days from date of grant of registration or (b) Date of furnishing return u/s 39.
- This relaxation is not available for those who have been granted registration as TDS diductor/TCS collector u/r 124 or who have obtained Suo-motu registration u/r 16.
- PC Note: Person violates the provisions of rule 10A, his GST registration is liable to be cancelled. obtaining registration certificate whose registration is cancelled by the proper officer on their own mot
Documents required for GST Registration
1.PAN Card
2.Proof of Constitution of Business
- Depending on the type of business entity, this could be:
- Certificate of Incorporation for companies
- Partnership deed for partnerships
- Registration certificate for LLPs
- Trust deed for trusts
- Registration certificate for others (e.g., societies, clubs, etc.).
- Identity and Address Proof of Promoters/Partners/Directors
- Aadhaar card
- Voter ID card
- Passport
- Driving license
- Business Address Proof
- Utility bills (electricity, water, gas)
- Rental/lease agreement of the business premises.
- Bank Account Details
- Bank statement or cancelled cheque of the business’s bank account.
- Digital Signature Certificate (DSC)
- DSC of authorized signatories for authentication and submission of documents electronically.
- Authorization Letter
- If the registration application is filed by an authorized representative, a letter of authorization from the business’s directors, partners, or proprietors is required.
- Additional Documents
- Any additional documents or certifications required based on the type of business entity and its nature of operations, as specified by the GST authorities.
- GST Registration Documents for Private limited Company
- Certificate of Incorporation
- PAN Card of the Company
- Memorandum of Association (MOA) and Articles of Association (AOA)
- Photo of Stakeholder (Promoter / Partner)
- Photo of the Authorized Signatory
- Proof of Appointment of Authorized Signatory
- Identity and Address Proof of Directors
- Proof of Principal Place of business
- Bank Account Details
